Publish date:

Edina's Regis to sell remaining 3,108 company-owned hair salons

The haircare company will go to a fully franchised portfolio.
Author:

Edina-based haircare company Regis is selling the remainder of its company-owned salons to franchisees.

The decision was announced on Tuesday as the company reported its 4th quarter and full-year operating results, with the remaining 3,108 salons still owned by the corporation soon to shift into the hands of franchisees.

The company had already sold 764 of its 7,145 total salons to franchisees this year, and noted that its company-owned salons had seen a 4.3 percent reduction in revenue this year.

"Given the success to date of the Company's effort to profitably sell and convert company-owned salons into its franchise portfolio, the Company has reached the decision to fully franchise its remaining company-owned portfolio of salons," the company said in a press release.

It contends that the move will result in a bigger return on the company's capital, result in a simpler business model that provides a "platform for sustainable organic growth," and put responsibility for the salons into the hands of owners who can offered a "more localized service experience."

The change will also allow Regis to cut the number of other salon brands it has from more than 50 currently to just five: Supercuts, SmartStyle, Cost Cutters, First Choice Haircutters, and Roosters.

Follow Bring Me The News on LinkedIn

Hugh Sawyer, Regis CEO, said: "After more than two years of carefully planned evolution we have identified and confirmed a compelling vision for Regis as a capital light, high growth, technology enabled franchise company.

"Although the transition to a capital light franchise model will initially have a dilutive impact ... we are convinced that a fully franchised business that generates a higher return on its capital will prove to be in the best long-term interests of our shareholders."

Regis says it'll take 18-24 months for the transition to completely franchisee-owned salons to be completed.

Next Up

Stock market chart

Ex-council member pleads guilty to stock manipulation scheme

Mark Allen Miller pleaded guilty alongside one other man to conspiracy to commit security fraud in U.S. District Court.

Kirill Kaprizov / Minnesota Wild

Minnesota Wild: 5 things you can count on in the 2021-22 season

Can the Wild live up to their lofty expectations?

masks, schools

After petition, Minneapolis Schools reduces student COVID quarantine period

Close contacts previously had to quarantine for 14 days, but that's now reducing to 10.

Walz-May 6 - address

Walz to announce 'new action' on hospital capacity, expanding rapid testing

It comes as Minnesota's health system is facing it's biggest COVID challenge yet.

2021.10.14 - Simmons Item 2

Hidden room with explosive, guns found on indicted TikToker's property

The MN man has been indicted on numerous charges, including impersonating an officer.

718 W Broadway Ave, Minneapolis, Minnesota - July 2019

Charges: Driver ran red light, crashed into woman on mobility scooter

The woman, who had the right of way, was thrown from the scooter and died.

covid-19

Weekly COVID case rate rises in 73 counties

The highest case rates remain in greater Minnesota.

midwest rail

Twin Cities plays key role in new Midwest rail plan

The 40-year plan would mean 24 trips daily between the Twin Cities and Chicago.

bemidji minnesota

Would you move to Bemidji for $2,500? More than 20 have so far.

The city is running a program that will pay people $2,500 to relocate there.

Related

1024px-Regis_Salon_Briarwood

Regis Corp. announces 290 job cuts across U.S., Canada

The Minneapolis-based company has been making major changes to its business model.

Regis is closing SmartStyle salons in 600 Walmarts

The Edina-based salon chain made the announcement Monday morning.

haircut, hair salon

Regis struggles as pandemic, rise of work-from-home keeps customers away

The salon chain posted a significant loss in the second quarter.

Regis Corp. plans to trim hair salons and brands

The new Chief Operating Officer told the Star Tribune the Edina-based company will close less than 10 percent of its 7,500 company-owned stores. An exact figure or locations were not disclosed. Regis also plans to eliminate half of its 50 brand names and convert most of the affected salons. The struggling company wants to reduce costs and simplify its business model.

Muscle Milk

Hormel sells company behind Muscle Milk to PepsiCo for $465M

The Minnesota company is ending its foray into the protein powder and drinks market.

Galleria Edina

The Galleria in Edina has been put up for sale

The company that owns it bought the mall for $127 million in 2012.

haircut-834280_1280

Hair and nail salons, spas to close as part of coronavirus shutdown

It wasn't immediately clear that hairdressers and spa-like businesses were included in the governor's shutdown.

15196242946_9995179572_k

Company that owns Chuck E. Cheese's files for bankruptcy protection

The restaurant industry has been hammered by the COVID-19 pandemic.